Oakajee’s Paynes Find Drilling Struggles to Break Through Alluvial Cover

Exploration Challenges at Paynes Find

Oakajee Corporation Limited’s quarterly activities report for the period ending 31 December 2024 highlights ongoing exploration efforts at its Paynes Find gold project in Western Australia. The company undertook auger drilling and sampling across two key target areas, Banks and Deep Well, aiming to penetrate the shallow alluvial cover that has historically impeded surface soil sampling.

Despite the strategic use of auger drilling to reach the bedrock-alluvium interface, assay results for gold and base metals were disappointing. At the Banks south-west extension, the results suggested insufficient penetration through the alluvial cover, with patchy gold values and low copper concentrations, particularly west of a north-south trending creek line. Similarly, the Deep Well target, a regional fold closure with promising magnetic signatures, yielded universally low assay results, indicating the auger drilling may not have reached the insitu weathered bedrock.

Financial Position and Corporate Developments

Financially, Oakajee ended the quarter with $1.28 million in liquid assets, comprising $433,338 in cash and $851,000 in shares of listed entities, including significant holdings in Santa Fe Minerals Limited and Turaco Gold Limited. The company reported payments of $50,360 to related parties, consistent with director fees and superannuation arrangements.

While the disappointing assay results temper near-term optimism, Oakajee remains active in evaluating other potential gold exploration projects, maintaining a cautious but forward-looking stance. The company’s management continues to oversee operations at Paynes Find, where it holds an 80% interest in several tenements, managing exploration activities under joint venture agreements.

Implications and Outlook

The challenges faced in penetrating alluvial cover at Paynes Find underscore the technical difficulties in exploring covered gold deposits. Oakajee’s experience highlights the need for potentially more advanced or alternative exploration techniques to effectively target concealed mineralisation. The current financial position provides a modest runway, with estimated funding for approximately three quarters at current expenditure levels.

Investors will be watching closely for the company’s next moves, particularly any shifts in exploration strategy or new project acquisitions that could reinvigorate growth prospects. The report also signals the importance of ongoing technical assessment to validate exploration methods in complex geological settings.